Priority Spending Control via Qbuxbox - 0002-08 ZZall 11-05-09

                                   - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -


                        TO:  Applicable Ministries                                                                                FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                        FILE:  0002-08/all

                         RE:  Priority BUXBOX Acctg System and HOMERS                                Originated:   May 2002     


Is there a Problem?

        We are finding that a number of Ministries .... especially smaller Churches ... are struggling financially.  We hope, as you go through the list below,  that you do NOT have a number of "Yellow" or "Red" Flagable Financial Issues.   Of course, the overall solution is to effectively utilize an accounting system like eFinFax as you have information to weekly control your Spending ..... Click Here.
 

               F I N A N C I A L   I S S U E S:

Green

Yellow

Red

 1>

 There is not enough income for the Board authorized

____

 ____

____

expenses of the General Purpose Fund-GPFund.

 2>

 The  Ministry Finance Team  is not functioning well

____

____

____

 3>

 The financial record keeping is not good. Such info is not

____

____

____

timely nor is it understood by those who should know.

 4>

 The GPFund is having to borrow from Donor Restricted

____

____

____

Special Purpose Funds   SPFunds) in order to meet expenses.

 5>

 There are few finance savvy people on the Board of Leadership

____

____

____

 6>

 Staff members are not getting paid timely

____

____

____

 7>

 The rent (or mortgage payment) is not paid on time.

____

____

____

 8>

 The withheld payroll taxes are not paid on time

____

____

____

 9>

 Unpaid bills are 60 to 90 days old

____

____

____

10>

 Operations are being funded by sale of assets

____

____

____

11>

 The Ministry Executive (usually a Pastor) has little expertise

____

____

____

in Ministry Finance matters.

If a Problem,  here is a  'Possible Solution'

        But if you have too many "red"  Flagable  items above, be sure and contact me at Jim@bcidotg.org.  I will discuss with you the  PRIORITY BUXBOX  Receipts and Disbursements System as managed by a  HOMER  who can efficiently serve you primarily remotely using the resources of modern day communication and the Internet as set forth within  the   eFinFax  accounting system  .  Of course,  this PRIORITY BUXBOX system can be operated by your trained staff or volunteers.  The SPENDING CONTROL  web site also provides you with details about this solution.  These resources have their origins with the Envelope system that many people use to manage their Personal Finances.  Please Go Here  for information about a Internet Centric (or Internet Friendly) solution specifically designed for this process and then  Go Here  and  Here  for some more perspective, but the system basics are:

  •   you obviously spend  SPFunds  money for that special purpose ..... not to cover any  GPFund   deficit

  •   you only spend the Board discretionary GPFund  money that comes in .... regardless of the amounts within the authorized annual budget, etc.

  •   you identify this incoming GPFund money by order of spending priority.

  •   you have a weekly accounting and reporting emphasis so that all know if they have money to spend following the week's deposits.

Here are some  'Possible Solution'  specifics

     Such a Church and has determined in advance which discretionary expenses of their operation is to be paid in order of priority. This results in the establishment of the following GPFund  Priority BuxBoxes:

  • 1st-BuxBox
          Self-Funding endeavors/events like VBS-AWANA etc; other specific events

  • 2nd-BuxBox
         Staffer Costs -- weekly payment emphasis Including payroll taxes that are due, also any volunteer clergy withholdings

  • 3rd-BuxBox
         Mission Obligations

  • 4th-BuxBox
         Rent/Debt Servicing and Facility Operating costs

  • 5th-BuxBox
        Ministry Operations

        When discretionary GPFund income arrives, the amount previously determined is assigned to the applicable BuxBoxes above.  When the applicable BuxBox has the agreed amount of money, the residual is assigned on down the line.  As displayed Here , a weekly report is provided so applicable parties will know if they have any money to spend, etc.

Please examine the following possible "Ministry" scenario:

     a>  The Ministry sets up checking and savings accounts at a Financial Institution who provides Online Banking services - contact us for such a list.  This might include the option of the Ministry remotely depositing to their Bank Accounts.  Plus you remotely can move money from one account to another. It will be frustrating if the Ministry does not  has a fast Internet connection.

      b>
Ministry makes use of the Bank's Online Banking system    or both  Ministry and the HOMER have access to the equivalent of their Bank Statement at any given time of the month.   Or arrangements are made for the use of QBOE  as set forth Here.

      c> 
At a predetermined weekly time HOMER gets info of what has been posted to Ministry's Bank Statement and electronically posts this data to HOMER's Quickbooks (QB) software system that HOMER establishes just for Ministry. The amount and check numbers info only are electronically posted to the QB system.  Deposit/receipt identification and check distribution/payee info is needed in order to complete the process. 

      d>
  So at an agreed time HOMER invites Ministry's Staffer,  via the Internet product known as  GoToMyPC,  to view their data now appearing within the QB system as shown on Homer's desktop.   Ministry Staffer has access to HOMER's keyboard so they can post to the QB accounting system on HOMER's computer..

      e>  So 
Ministry's staffer remotely inputs alphabetical information and distributes the recorded receipts and checks to the appropriate BuxBoxes below as HOMER watches and understands, etc.

      f> 
Using the available GoToMyPC  Chat resource -- after a time there is no need for phone calls --- Ministry's staffer  and HOMER can interact for any needed two-way communication, etc.  The GoToMyPC resource would not be needed if you used the QBOE mentioned above because everyone has access to the info via the Web or Internet.

      g>  Both have and
go through viewed checklists to insure completion of all tasks that might include:  Ministry's Staffer makes weekly plastic payments (Click here for more details); does complete posting of receipts and checks, etc; and applicable weekly priority allocations.

      h>   At this time we do not have specific  "PRIORITY" BUXBOX  System report samples.  So please see the  BuxBox  samples below as the "PRIORITY" BUXBOX  System reports will be very similar. 

      i> 
 HOMER now does QB weekly Proofs and produces the previously defined and agreed BuxBox Status reports Click here  to view samples below.

      j> 
 Ministry's Staffer uses something like PRINT SCREEN to make h/copy of various BuxBox Status reports, or  HOMER converts them via QB into Excel docs and sends to Ministry as Email attachments

      k>
 From such reports the  Ministry  
has the needed spending control information for next week's controlled buying via Plastic or Check writing.

S E E    D E T A I L E D   BuxBox  S A M P L E S   B E L O W:

       
        1st  BuxBox Details and Balance:

        2nd  BuxBox Details and Balance:

        3rd  BuxBox Box Details and Balance:

        Overview, or Photo, Status Report

        Check Stub Activity and Running Balance Report

     Please let us know at Jim@bcidot.org  if you have any comments or questions.  Thank you.


                    The bulk of this Publication originated in May 2002 UPTD:October 25, 2010.  Contact me at Jim@bcidot.org 

 

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